CyberCare Announces First Quarter 2002 Operating Results; Revenues, Excluding Recent Subsidiary Disposal, Increase by 28%.

Business Editors/Medical & High Tech Writers

BOYNTON BEACH, Fla.--(BUSINESS WIRE)--May 15, 2002

CyberCare, Inc. (Nasdaq:CYBR), today announced financial results for the first quarter of 2002. Revenues for the first quarter of 2002 increased 28% to $5 million compared to the same period last year, excluding the recently disposed of Southeast Medical subsidiary. The Company had an increase in revenues of $728,000 for the first quarter of 2002 compared to the first quarter of 2001. The loss for the quarter of $7.3 million was higher than the $5 million loss for the same quarter of 2001. It includes $1.3 million of primarily non-cash one-time charges. Consolidated and segment comparisons between the first quarter of 2002 and 2001, is as follows (000s omitted):

                                      Services     Business
                                   ---------------------------
                                    Physical
For the three                      Therapy and
months ended    Consoli-            Rehabili-          Total
March 31, 2002   dated   Technology  tation  Pharmacy Services Corporate
-------------- --------- --------- --------- -------- -------- ---------
Net loss       $ (7,263) $ (3,598) $  (400)  $  (57)  $ (457)  $ (3,208)
One Time
Charges           1,320         0      718        0      718        602
               --------- --------- --------- -------- -------- ---------
Net Adjusted
(loss) Income  $ (5,943) $ (3,598) $   318   $  (57)  $  261   $ (2,606)
               --------- --------- --------- -------- -------- ---------

EPS - Adjusted $  (0.09) $  (0.05)     ---      ---      ---   $  (0.04)


For the three
months ended
March 31, 2001
Net (loss)
Income         $ (5,025) $ (5,358) $   563   $ (162)  $  401   $    (68)
               --------- --------- --------- -------- -------- ---------


EPS            $   (.08) $  (0.08)     ---      ---      ---       ---

The increase in corporate losses was substantially offset by a 32.8% reduction in Technology losses. After adjustments for one-time charges, Physical Therapy remained profitable and Pharmacy reduced its losses by 64.8%. Both service businesses continue to be cash flow positive. In early 2002, the Company began repositioning itself with a new President/CEO, coupled with changes in senior management and the Board of Directors. The Company's business philosophy and operational methodologies have changed to give greater focus on shareowner value, both in terms of the current business operation and future growth of the business.

Net sales increased in each of the Company operating entities; Technology $83,000 (+33.7%); Services $645,000 (+16.1%) in the first quarter of 2002 as compared to the first quarter 2001. This growth was the direct result of organic expansion by opening new clinics, closing unprofitable clinics, expanding services and our customer base. Additionally, the Company has lowered its cost of services in the technology business by 11% compared to the same period last year. This was the direct result of lowering the cost of equipment sold and the cost management program focusing on internal and customer support costs. The Company continues to resolve several one-time charges, which relate to legacy items. Cost management initiatives have resulted in a dramatic 50.2% reduction in the current cash burn rate from the 2001 level.

"We continue to conservatively report our financials and closely follow revenue recognition reporting. Operating expenses have been dramatically reduced late in the first quarter of 2002 by an estimated annualized reduction of over $9 million," said Steven M. Cohen, chief financial officer. "The Company's past performance has been evaluated and many of the legacy items facing the Company have been addressed. Others still exist, but we are taking an aggressive posture to mitigate any ongoing risks and balance our obligations as we move forward," Cohen added. "While there are many challenges ahead, we believe the financial results reported for all businesses for the remainder of 2002 will reflect our new direction and will show improvement."

"The recently reported availability of $10 to $15 million dollars of new milestone financing, coupled with our greatly reduced expenses and increasing revenues, should provide the necessary cash flow to position us to implement our strategic objectives," said Joe Forte, president and CEO. "Our cost management plan continues to be effective and have an immediate impact. The values oriented, performance-based culture introduced in the first quarter of 2002 across the company has provided focus and attention to running the businesses as a business. The organization is highly motivated and we continue to do more with less," Forte added. "Our technology products are beginning to show improved customer interest and acceptance, and our service businesses have begun to show increased patient volumes, growing revenues and improved cash flow. We believe the actions underway, our focus on impact versus activity and our strategic direction in 2002 will translate into increased shareowner value. As reported on March 20, 2002, we will unfold the balance of our strategic plan over the next several weeks."

About CyberCare, Inc.

CyberCare, Inc. is a holding company, which is primarily composed of a services business comprising both a physical therapy and rehabilitation business and a pharmacy business, and a healthcare technology solutions business. Our overall goal is to improve the delivery and quality of healthcare for patients while adding incremental value to our customers' clinical and business processes. Our physical therapy and rehabilitation business operates clinics throughout the State of Florida. Its caring staff of clinicians and therapists compliment traditional primary care, orthopedic and neurological physician services and serves a wide range of patients requiring physical and occupational therapy and other rehabilitation services. Our pharmacy business supports thousands of patients and residents in assisted living and other long-term care facilities located in Florida. It also is licensed for mail order distribution across all fifty states.

Our healthcare technology business utilizes its intellectual property, including patented technology, to deliver tele-health solutions addressing the entire continuum of care. It's Electronic HouseCall(R)(EHC)(TM) hardware and software technology focuses on the chronically ill, wellness management, compliance and wound care. The EHC(TM) family of products and services permit enhanced physician supervision and oversight and enable remote medical and wellness monitoring and real-time interactive communications between patients and caregivers. This is made possible through various monitoring devices, hardware and software applications and our ability to establish an interactive network across the health care continuum and among a community of users and providers. In combination with our customers clinical and business processes the Electronic HouseCall(R) system allows for effective and efficient data collection, integration and security, while successfully supporting case management and promoting personal participation and interaction. CyberCare, Inc. is headquartered in Boynton Beach, Florida. Visit our website at http://www.cybercare.net.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, product acceptance and effectiveness, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.